Many nations are trading internationally without it now, and these “bilateral trade agreements” are on the rise. Growing global disinterest in the dollar will only increase the need for monetary alternatives that can be easily sent globally, like Bitcoin.
Now, news is breaking out of Russia that they may be ready to end their time using the U.S. Dollar as Russia can move from the US Dollar much sooner than we thought.
Also read: Russia Plans Bitcoin Ban by 2015
Russia Today, or RT, is reporting the words from the head of the number two bank in Russia, Audrey Kostin, Chairman of the Board of VBT. He says that Russia can move from the US Dollar as a currency within 2-3 years.
“Two to three years is enough, not only to launch [settlements in rubles], but also to complete these mechanisms.” he stated in an interview with Izvestia newspaper.
With all of the global trade and allies Russia works with; this could be devastating for the long-term demand for the US Dollar. The official stated rate of inflation is less than 2% over the last two years, but real inflation rates are estimated at around 5% annually. Check your recent gas and meat prices. Gasoline prices per gallon were $1.61 in the U.S. on January 3rd, 2009, when Bitcoin was first created.
More than 50% of all dollars are held outside of the U.S.. And when demand drops for these dollars worldwide, these dollars will move to a place where they do hold value, their place of origin. With more dollars potentially coming back to the U.S., “hyper-inflation” is a major threat to the future of the U.S. economy. More dollars in the economy mean higher prices, and major nations like Russia leaving the dollar behind will flood the economy with dollars, leading to severe economic effects. Another reason Russia can move from the US Dollar is with the creation of the BRICS Development Bank.
When, not if, the stock market corrects itself, and major players like Russia leave the dollar in the dust, many will move to Bitcoin, just as a way to bridge the economic gap. Bitcoin may never be the “Global Reserve Currency”, but it is the first truly global currency, and it is able to be traded worldwide as Bitcoin. There is no need to exchange it for fiat currency, unless you want to. It can buy goods and services worldwide, as Bitcoin, which is a huge advantage it has over 99% of all current fiat currencies, save the US Dollar.
The U.S. Dollar is heading into very murky waters over the next few years, as this news reveals, and people who invest in Bitcoin for the long-term will benefit handsomely. Those who are short-sighted about Bitcoin will pay much more of a price in the long-term.
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Last modified (UTC): October 8, 2014 13:39